Infrastrutture Wireless Italiane S.p.a. · MIL:INW
Infrastrutture Wireless Italiane — Q3 2024 Earnings Presentation
27 slides from Infrastrutture Wireless Italiane's earnings presentation, Nov 6, 2024
Slide 1: Q3 2024 Financial Results
Q3 2024 Q3 2024 Financial Results November 6th,2024
Slide 2: Safe Harbor
Safe Harbor This presentation contains statements that constitute forward-looking statements. These statements mentioned repeatedly in this presentation and include statements regarding the intent, belief or current expectations of the customer base, estimates regarding future growth of the business
Slide 3: Q3 2024 results key messages
Q3 2024 results key messages Asset Expansion: growth in Sites, PoPs, Indoor Locations and Land Ownership affirming INWIT market leadership Resilient financials: high 1-digit revenue growth and continued EBITDAaL margin expansion Strong growth in Indoor Coverage: new locations covered with DAS and co
Slide 4: Q3 2024: continued growth in a transitional year for the Italian TLC industry
Q3 2024: continued growth in a transitional year for the Italian TLC industry Resilient Strong Indoor Margin Strong cash Revenues Coverage expansion conversion +7.6% +61.0% +9.0% €159m Organic Revenue Growth New Services Revenue EBITDAaL Growth Recurring FCF Growth CPI link, New sites, More DAS loca
Slide 5: New Sites: coverage and capacity needs leading to >900 New Sites in 2024
New Sites: coverage and capacity needs leading to >900 New Sites in 2024 Total Macro Sites New Sites (k Sites) +4% (#Sites) YoY 24.5 24.7 24.1 24.3 23.8 +960 315 LTM 230 85 240 205 200 65 60 45 80 230 165 160 180 120 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Anchors MSA Other BTS p
Slide 6: Anchor PoPs: sequential improvement, in line with MSA commitments
Anchor PoPs: sequential improvement, in line with MSA commitments Anchors – Total PoPs Anchors - New PoPs (k PoPs) +5% (#PoPs) YoY 42.3 +2.1k 41.4 41.8 LTM 40.2 40.8 620 640 610 490 400 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Anchor clients: Highlights ▪ Business model of shared
Slide 7: OLOs' PoPs: 2-digit growth continues, underpinned by IoT clients
OLOs’ PoPs: 2-digit growth continues, underpinned by IoT clients Other Clients – Total PoPs Other Clients - New PoPs MNOs, FWAs, Others +13% MNOs, FWAs, Others (k PoPs) YoY (#PoPs) +1.7k LTM 14.4 14.8 13.5 13.9 13.1 520 400 400 420 350 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 MNOs
Slide 8: New Services: >60% revenue growth driven by coverage of new indoor locations
New Services: >60% revenue growth driven by coverage of new indoor locations New Services Revenues Growing asset base for indoor coverage (Eur m) >+60% ~580 ~9.4k ~1,000km DAS Highway and YoY Remote Units Projects/Locations (DAS, Small Cells) Roadway Tunnels 18.8 15.8 16.1 14.3 11.7 COMMERCIAL WINS
Slide 9: P&L Q3 2024: continued margin expansion driven by lease cost optimization
P&L Q3 2024: continued margin expansion driven by lease cost optimization (€m) Q3 2023 Q2 2024 Q3 2024 YoY Highlights ▪ 7.6% revenue growth driven by: Total Revenues 242.0 257.1 260.3 7.6% ▪ CPI link, based on 2023 avg FOI index One-off Revenues 0.2 0.0 0.0 ▪ MSA growth commitments (current focus on
Slide 10: Cash flow: high cash conversion translating into balance sheet optionality
Cash flow: high cash conversion translating into balance sheet optionality (Eur m) Q3 2024 cash flow build up Highlights ▪ €159m RFCF with 67% cash conversion ▪ Structurally low recurring capex ▪ No taxes cash out (payments in Q2 and Q4) ▪ Positive NWC in line with FY24 guidance ▪ Financial charges
Slide 11: 2024-2026 guidance: high visibility despite lower inflation and OLOs market trend
2024-2026 guidance: high visibility despite lower inflation and OLOs market trend 2023A 2024E 2026E EUR m updated confirmed Highlights ▪ +3% Sites CAGR, +6% PoPs CAGR, >30% New Services CAGR 1,030 – 1,060 Revenues 960.3 1,160 – 1,240 Low-end ▪ Slowdown in OLOs market (FWA in particular) ▪ Slight EBI
Slide 12: Business model ensures growth and optionality in an evolving scenario
Business model ensures growth and optionality in an evolving scenario Evolving External Scenario ▪ Macro and inflation outlook ▪ Structural need to improve 5G coverage and densification ▪ Continued mobile data growth ▪ Italian TLC and Digital Infra industry outlook Best Tower Assets Strong Industria
Slide 13: Annex
INWIF Annex
Slide 14: Italian digital infra market: ongoing TLC evolution and structural growth ahead
Italian digital infra market: ongoing TLC evolution and structural growth ahead ITALIAN TLC ▪ Despite the need for mobile infra investments, discretionary CapEx in Italy has been limited by financial constraints of MNOs MARKET ▪ Several transactions announced (consolidation and network sharing) pote
Slide 15: ESG: overview of Ratings and Index Memberships
ESG: overview of Ratings and Index Memberships ESG Index Membership 15
Slide 16: Strong protection in inflationary environment
Strong protection in inflationary environment FY 2023 Results Presentation - Updated Inflation impact on key variables % of 2023 Key Figures CPI link mechanics Revenues Inflation sensitivity: Revenues 100% +1% inflation equals >€5m EBITDAaL 100% linked to prior-year avg CPI Anchor MSA macro site 82%
Slide 17: PoPs volumes assumption: >6% CAGR driven by +3% New Sites CAGR
PoPs volumes assumption: >6% CAGR driven by +3% New Sites CAGR FY 2023 Results Presentation New Macro Sites – MSA and other BTS programs >3% CAGR % ▪ Tenancy Ratio at 2.5x in 2026E vs 2.23x in 2023 >1.2k ~1.0k ▪ “MNO only” tenancy ratio at 1.9x in 2023E ▪ 3 BTS programs: MSA, Next Gen EU, Open Fiber
Slide 18: New Services: Material opportunity in DAS Indoor Coverage Solutions
New Services: Material opportunity in DAS Indoor Coverage Solutions FY 2023 Results Presentation - ▪ Critical need for seamless outdoor and indoor connectivity within enterprises, large venues, public spaces and transport infrastructure Updated ▪ DAS Technology (Distributed Antenna System): multiten
Slide 19: Cost efficiency across the board
Cost efficiency across the board FY 2023 Results Presentation - Updated % Land Owned EBITDAaL Margin % ▪ Continued work on lease cost, tracking ahead of cost reduction targets 2023A 2026E 2023A 2026E Ground Lease ▪ Strong track record in lease cost reduction despite inflation link cost kicking-in an
Slide 20: Asset and cost optimization continues with tangible results
Asset and cost optimization continues with tangible results Tenancy ratio1 Lease cost per site2 EBITDAaL per site3 (x) (€k) (€k) 29.2 30.4 30.7 8.3 8.1 7.7 2.21 2.28 2.30 Q3'23 Q2'24 Q3'24 Q3'23 Q2'24 Q3'24 Q3'23 Q2'24 Q3'24 EBITDAaL 71% 72% 73% margin Best in class tenancy ratio Strong track record
Slide 21: CapEx plan with 2-digit IRR, peak in 2024 due to New Sites
CapEx plan with 2-digit IRR, peak in 2024 due to New Sites FY 2023 Results Presentation Capex Plan supporting material EBITDAaL growth ’24-’26 Capex Breakdown CapEx EBITDAaL Growth1 (Eur m) (Eur m) Maintenance ~800 ~1,450 Other New Sites and upgrade ~30% >430 EBITDAaL €~800m Growth / Capex CapEx SC/
Slide 22: Data book: Cumulated P&L
Data book: Cumulated P&L 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 6M22 9M22 FY22 3M23 6M23 9M23 FY23 3M24 6M24 9M24 Currency: €m (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Ma
Slide 23: Data book: Quarterly P&L
Data book: Quarterly P&L Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Currency: €m (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep
Slide 24: Data book: Balance Sheet
Data book: Balance Sheet 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 6M22 9M22 FY22 3M23 6M23 9M23 FY23 3M24 6M24 9M24 Currency: €m (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Ma
Slide 25: Data book: Cash Flow
Data book: Cash Flow 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 6M22 9M22 FY22 3M23 6M23 9M23 FY23 3M24 6M24 9M24 Currency: €m (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (
Slide 26: Data book: Operational KPIs
Data book: Operational KPIs 1 3 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 3M20 6M20 9M20 FY20 3M21 6M21 9M21 FY21 3M22 6M22 9M22 FY22 3M23 6M23 9M23 FY23 3M24 6M24 9M23 Figures in #k (Jan-Mar) (jan-Jun) (Jan-Sep) (Jan-Dec) (Jan-Mar) (Jan-Jun) (Jan
Slide 27: More Questions? Ask Investor Relations
More questions? Ask Investor Relations Fabio Ruffini Head of Investor Relations & Corporate Development fabio.ruffini@inwit.it ir@inwit.it
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